COVID-19: Tamil Nadu increases VAT on petrol, diesel
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Tamil Nadu government on Sunday revised Value Added Tax (VAT) on petrol and diesel to generate additional revenue for the state, that is reeling under COVID-19 crisis.
A notification issued by the government says the revision will come into force on the midnight of May 3/May 4. Accordingly, the prices of petrol will go up by Rs 3.25 per litre and diesel by Rs 2.50 per litre.
Sources said the changes would generate additional income of Rs 250 crore to the state monthly. Petrol and diesel prices do not come under the ambit of GST as VAT on them is one of the major revenue generators for the state governments.
The move by the Tamil Nadu government amid the COVID-19 crisis has surprised many in the state.